Co-op banks hike home loan rates

PUNE: Taking a cue from commercial banks, some of the leading co-operative banks too have hiked interest rate on home loans by 25 to 75 basis points. Urban co-operative banks are permitted to extend home loans up to Rs 15 lakh. Cosmos Bank, for instance, has upped the interest rate on home loans up to Rs 5 lakh to 8.50% as against 8.25% before August 1, this year.

Loans ranging between Rs 10 lakh to Rs 15 lakh carry an interest of 9.5% as against 8.75% earlier. Mumbai-based Shamrao Vithal Co-operative Bank too has gone for a rate hike on home loans. The interest rate is 10% for a Rs 10-15 lakh loan.

Saraswat Bank, the largest urban co-operative bank, raised interest on home loans over a month ago. A 10% rate is being charged on home loans up to Rs 15 lakh.

However, Abdhyudaya Bank has not revised the rates over the last six months. The bank charges an interest of 8% on loans up to Rs 15 lakh. There are fewer takers for home loans from co-operative banks as compared to commercial banks.